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Accounting And Legal Regulation Of Related Party Transaction In Enterprises

Posted on:2022-05-03Degree:MasterType:Thesis
Country:ChinaCandidate:X BinFull Text:PDF
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With the development of China's market economy and diversification of investment methods,many companies have formed a variety of related party relations,related party transactions have more and more influence on the performance of enterprises.The fair related party transaction promotes the optimal allocation of social resources,while the unfair related party transaction directly damages the interests of the majority of investors and disturbs the normal operation of the securities market.Some listed companies use unfair related party transactions to manipulate statements or transfer interests,resulting in the loss of economic interests of the company.Such unfair related party transactions are more common when ST company suffers from delisting crisis.From 2010 to 2020,the number of administrative penalties imposed by CSRC on unfair related party transactions is on the rise,so it is particularly urgent to study how to regulate related party transactions of enterprises.Based on the above background,this paper makes a specific study on the related party transactions of enterprises,uses descriptive statistics method,and makes statistical analysis on the industry distribution,transaction characteristics and year of punishment of related party transactions with reference to the sample data of unfair related party transactions punished by China Securities Regulatory Commission from2010 to 2020.After summing up the characteristics of sample companies,this paper puts forward the identification method of "three characteristics" of unfair connected transactions,that is,the particularity of transaction objects,the irrationality of transaction pricing and the suspicious nature of transaction.On the basis of statistical analysis,this paper summarizes the accounting and legal regulation status of related party transactions in China.Case analysis was used to review the target cases.This paper selects ST Huarong as an example.This case has two characteristics of identification method,and has a long time span and difficult audit,which is typical.By summarizing the consequences of the event,combining with the company's current operating conditions,using identification method to compare the characteristics of the case,we find the motivation of related party transaction fraud,including shell protection and a strong desire to seek restructuring,and analyze its shell protection road from the perspective of operating income and net assets.Combined with the case,the author puts forward some suggestions on improving accounting standards and legal regulation.The conclusion of this paper is that,in order to identify unfair connected transactions,it is necessary to pay close attention to the market situation and adopt the "three characteristics" identification method for comparative analysis,especially the exchange of non-monetary assets of enterprises.From the perspective of improving accounting standards,the identification of related parties should be clarified,enterprises should apply the corresponding standards for accounting treatment,and enterprises should be allowed to disclose the association relationship completely and accurately according to the accounting standards.From the perspective of legal regulation,the disclosure system of related party transaction information should be improved,and the legal liabilities of all parties involved in unfair related party transaction should be clarified.Suggestions for all parties are as follows: For the management of the company,improve the company's internal audit system,strengthen the supervision and control of the company's internal capital flow,and improve the internal financial control system;For the regulatory authorities,in order to effectively guide the fair related party transactions between enterprises,strengthen the supervision of enterprises in specific industries,focus on the supervision of enterprises in the sprint period of listing and ST delisting period,improve the related party transaction information disclosure system and transaction decision-making mechanism;From the audit level,accountants and firms should improve the ability to identify and deal with fraud risks,flexibly formulate and adjust audit means,strengthen the understanding of the ownership structure of enterprises,capture the hidden related parties,and pay attention to identify the undisclosed related parties behind abnormal transactions in the audit process.
Keywords/Search Tags:Listed Company, Unfair Related Party Transactions, Accounting Standard, Legal Regulation
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